Liberia - The Public Financial Management Reform Support Programme (PFMRSP-I)

Liberia - The Public Financial Management Reform Support Programme (PFMRSP-I) - (Additional Grant)

Project Summary

Approval Date	27 May 2009
Signature Date	01 Jun 2009
Planned Completion Date	31 Dec 2010
Last Disbursement Planned Date	31 Dec 2010
Sovereign / Non-Sovereign	Sovereign
Sector	Multi-Sector
DAC Sector Code	11330
Commitment	U.A 3,386,000
Status	Completion

Project General Description

The present intervention concerns the supplementary support of UA 3.386 million to Liberia’s Public Financial Management Reform Support Programme (PFMRSP) I. The proposed supplementary assistance provides additional budget support to help the government cope with the extraordinary adverse conditions posed by the current international economic crisis (2009). The PFMRSP I is designed to support the codification of budget operations that should allow the transition to the Integrated Financial Management Information System (IFMIS), aligning the state budget system with internationally accepted standards. It's a program in line with the Poverty Reduction Strategy (PRS) in which the government launched a medium-term PFM Reform Program and a program to modernize FISC administration. The PFMRSP I should deepen these reforms to ensure budget effectiveness by improving its development, implementation, and monitoring. This programme comprises four main components, namely: strengthening of public financial management system; strengthening revenue mobilization; enhancing procurement and auditing system and assisting the government to respond to the global food crisis.

Project Objectives

The overarching purpose of the PFMRSP I is to buttress four pillars: (i) strengthen public financial management (PFM) systems; (ii) modernize the revenue administration; (iii) reinforce procurement and audit systems; and (iv) support the government’s response to the global food crisis.

Beneficiaries

The program should benefit the Ministry of Finance and other key institutions to accelerate the implementation of the reform process. It's also expected to benefit the Liberian people by improving the delivery of public services and promoting an enabling environment for private sector development.

Participating Organization

Funding

Transition Support Facility

Implementing

Ministry of Finance

Implementing

GOVERNMENT OF LIBERIA MINISTRY OF FINANCE

Information

IATI identifier	46002-P-LR-K00-011
Last Update	27 Mar 2023

Export

Contact Details

Name	Kalayu GEBRE-SELASSIE
Email	k.gebre-selassie@afdb.org

Geographic Location

Country	Liberia

Coordinates	Location Name
6.5 -9.5	Liberia

Project Classification

Finance Type	Aid Grant Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	Other Technical Assistance

Commitments

U.A 3,386,000

Transition Support Facility

U.A 3,386,000

Disbursements

Document Type	Language	Document
Appraisal report	fr	Liberia - Programme d appui à la reforme de la gestion des finances publiques - Rapport d’évaluation
Appraisal report	en	Liberia - The Public Financial Management Reform Support Programme PFMRSP-I - Appraisal Report

Indicator	Indicator Measure	Target Year	Target Value	Actual Year	Actual Value
Implementation of the Public Financial Management (PFM) law	None	2009	Public Financial Management law implemented	2010	The PFM law was submitted to parliament in November 2008 and approved in August 2009
Merging Bureau of Budget with the Ministry of Finance (MoF)	None	2009	Yes	2010	The Bureau of Budget (BoB) has been incorporated in the Ministry of Finance, however, the physical relocation has not taken place because of space constraints
Macro-Fiscal Unit (MFU) increasingly performing core functions and linking budget to Medium Term Fiscal Framework (MTFF)	None	2009	Yes	2010	The MFU is staffed and the MTFF was prepared for 2009 but not used to complement the FY2009/10 budget
Number of qualified staff hired	Number	2009	5.0	2010	5.0
Budget starts providing information on donor aid flows	None	2009	Yes	2010	The 2009/2010 budget contains a comprehensive annex on project aid flows
Information on total aid flows being provided on a monthly basis	None	2009	Information on total aid flows being provided on a monthly basis by September 2009	2010	Aid flows are being published quarterly
Establishment and fully competent staffing of an IT department to support the various new software programs	None	2009	Yes	2010	An IT department has been established, a Director has been recruited and is actively managing the department
Integrated tax administration System (ITAS) and Automated Systems for Customs Data (ASYCUDA) project teams established	None	2009	Yes	2010	Project teams and project manager in place for ASYCUDA, but not for ITAS, because of the delay in no-objection from the WB. The ITAS functional project team has been established but the technical team is not complete. Staff is being recruited for the technical team, a project manager has been recruited and is expected to be effective as of October
Risk management systems implemented and post audit systems enhanced	None	2009	Yes	2010	Fifteen new auditors have been recruited for the internal audit units and a candidate shortlist for the internal audit director (to be financed by the WB) is being prepared
Functional one-stop service	None	2009	Functional one-stop service by end-March 2009	2010	The One Stop Shop has been operationalized
PSI exit strategy in existence	None	2009	PSI exit strategy in existence within six months from date of PSI contract	2010	The PSI exit strategy has not been developed (the PSI contract has not been rewarded)
Integrated Financial Management Information System (IFMIS) starts being used in all relevant Ministry of Finance (MoF) departments	None	2009	IMFIS starts being used in all relevant MoF departments; network installed by end-March 2009	2010	Installation of the LAN has been delayed, even beyond what was expected when the supplemental report was prepared. The LAN is now expected to be ready by March 2010.
A reduction in the import tax on rice and tariffs for agricultural inputs	None	2009	Yes	2010	The authorities comprehensive food strategy continues to include suspended import duties on rice (at an estimated cost of 0.9 percent of GDP in lost revenues) and agricultural inputs
Regional experts help produce successive external audits of five ministries	None	2009	Regional experts help produce successive external audits of five ministries by end-June	2010	The first round of audits was sent to Parliament in May, 2009, and a second (for 2007/2008) is underway and is expected to be terminated towards end of October, 2009
Internal audits being applied in key ministries	None	2009	Internal audits being applied in key ministries by end-June	2010	An Internal Audit Strategy has been approved but the internal audits have not yet been implemented